❓ Hon Colin Tincknell questions the Minister for Regional Development regarding a pledge to upgrade Busselton Margaret River Airport after securing Jetstar flights and seeks a breakdown of the subsidy provided to Jetstar. The Minister responds that upgrades will occur if the trial proves successful and larger aircraft are needed.
AnsweredQoN 1130Legislative Council
QuestionView source ↗
BUSSELTON MARGARET RIVER
AIRPORT
1130. Hon COLIN TINCKNELL to the Minister for Regional Development:
(1) Now that the
commercial airline Jetstar has taken the first step to introduce direct flights
between Melbourne and Busselton, can the minister explain why the government
has reneged on the pledge to upgrade the Busselton Margaret River Airport once
the major carrier could be secured?
(2) Can the
minister provide a breakdown of where the funding is coming from for the
reported $6 million to $8 million subsidy to Jetstar over the three years, and —
(a) how much is
being footed by the state government;
(b) how much is
from the royalties for regions legacy; and
(c) how much is
being left to be funded by the local council?
AIRPORT
1130. Hon COLIN TINCKNELL to the Minister for Regional Development:
(1) Now that the
commercial airline Jetstar has taken the first step to introduce direct flights
between Melbourne and Busselton, can the minister explain why the government
has reneged on the pledge to upgrade the Busselton Margaret River Airport once
the major carrier could be secured?
(2) Can the
minister provide a breakdown of where the funding is coming from for the
reported $6 million to $8 million subsidy to Jetstar over the three years, and —
(a) how much is
being footed by the state government;
(b) how much is
from the royalties for regions legacy; and
(c) how much is
being left to be funded by the local council?
AnswerView source ↗
(1)–(2) I
thank the member for the question. I am sure the member shares our sense of
celebration that after all this time we have finally been able to secure those
air services. We have worked very closely with the City of Busselton to achieve
that outcome. When we were able to negotiate those services, it was made very
clear to our government by Jetstar—indeed, by the CEO and by the
chairman of the Qantas group—that it did not require a new terminal
because these services, which are on a trial basis for three years, are not of
such a scale that a new terminal is required. I wonder why people would think
that we would then spend $16 million of ratepayer and taxpayer funds to build a
terminal when we can get the air services without that. If this trial works—I
am pleased to say that the assisted tickets are going out the door rapidly—we
are optimistic that over time this service will be entrenched. However,
obviously we need to have a business case to back the investment and use of
taxpayer funds. We are making some enhancements to the airport to enable the
trial to go ahead for the next three years. If it shows that there is a need
for bigger aircraft and we need a bigger terminal, that is when we will build
it. The government as a whole has already put in $43.25 million towards the
airport and the site and also to airline attraction, and it will put in an
extra $3.2 million to upgrade the terminal. However, as is usually the case,
the overall package that has been presented to Jetstar is considered to be
commercial-in-confidence.
thank the member for the question. I am sure the member shares our sense of
celebration that after all this time we have finally been able to secure those
air services. We have worked very closely with the City of Busselton to achieve
that outcome. When we were able to negotiate those services, it was made very
clear to our government by Jetstar—indeed, by the CEO and by the
chairman of the Qantas group—that it did not require a new terminal
because these services, which are on a trial basis for three years, are not of
such a scale that a new terminal is required. I wonder why people would think
that we would then spend $16 million of ratepayer and taxpayer funds to build a
terminal when we can get the air services without that. If this trial works—I
am pleased to say that the assisted tickets are going out the door rapidly—we
are optimistic that over time this service will be entrenched. However,
obviously we need to have a business case to back the investment and use of
taxpayer funds. We are making some enhancements to the airport to enable the
trial to go ahead for the next three years. If it shows that there is a need
for bigger aircraft and we need a bigger terminal, that is when we will build
it. The government as a whole has already put in $43.25 million towards the
airport and the site and also to airline attraction, and it will put in an
extra $3.2 million to upgrade the terminal. However, as is usually the case,
the overall package that has been presented to Jetstar is considered to be
commercial-in-confidence.
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